New Jersey Assembly Bill A5188

New Jersey 2024-2025 Regular Session

Caption

Requires availability of electronic fund transfers by health insurance carriers to reimburse covered persons.

Impact

The proposed legislation represents a significant shift in the operational framework of health insurance reimbursements within New Jersey. By instituting a requirement for electronic fund transfers, A5188 seeks to streamline the reimbursement process, potentially reducing the time it takes for covered individuals to receive their reimbursements. This change could lead to increased satisfaction among policyholders, especially those who prefer digital transactions over traditional methods like checks.

Summary

Assembly Bill A5188, introduced by Assemblyman Anthony S. Verrelli, aims to mandate that health insurance carriers provide an option for reimbursement to covered persons through electronic funds transfers (EFT). The bill requires that health benefits plans inform covered individuals about any associated fees with EFTs and offer guidance on how to initiate EFTs for receiving reimbursements. The implementation of this requirement seeks to enhance the convenience and efficiency of the reimbursement process for insured individuals.

Contention

While the bill is generally aimed at improving consumer experience, possible points of contention include concerns regarding the transparency of associated fees for EFTs, which might lead to additional costs for consumers. Stakeholders may debate whether these fees truly benefit the insured or if they represent an unnecessary burden. Additionally, the enforcement mechanisms outlined in the bill, which involve the New Jersey Department of Banking and Insurance, may raise questions about their efficacy and the potential for administrative challenges.